Jun 29 2006
Imperial Chemical Industries PLC has reached an agreement to sell its oleochemicals and surfactants business, Uniqema, to Croda International PLC for a gross consideration of 410m GBP, subject to closing balance sheet adjustments, including working capital and net debt. The net consideration will be paid in cash on completion.
Of the gross consideration, 24m GBP will be used to provide for deal-related costs and tax. Of the balance, approximately 130m GBP will be used to reduce ICI's related post-retirement benefit deficits and around 256 m GBP will be used in the near term to reduce net debt. The transaction is expected to give rise to a profit after tax of around 16m GBP which will be accounted for as a special item in ICI's Income Statement when the deal has been completed.
The transaction is expected to be completed in Quarter 3, 2006, subject to approval by Croda shareholders, regulatory approval and employee consultation. In the case of the Uniqema business within ICI India Limited, the transaction is subject to its shareholders' approval. The Uniqema business within ICI Pakistan Limited will not be part of the transaction.
ICI took the strategic decision in February to divest Uniqema. ICI Chief Executive John McAdam stated at the time that there was no compelling need to divest Uniqema, but if there was scope to realise value from a sale, ICI would have several attractive opportunities to invest the proceeds in other parts of ICI.
Dr McAdam said today: "We are pleased with the outcome of this sale process, and we are confident that we can deploy these resources into other parts of ICI which we believe can generate greater strategic and financial returns for our shareholders."
He added: "I want to thank Uniqema's employees for their outstanding service to ICI over many years and wish them every success."